Fintech startup Cred will invest $10 million in peer-to-peer (P2P) non-banking financial company LiquiLoans, the two companies announced on Friday.
LiquiLoans is a lending platform that connects borrowers and lenders through technology. It eliminates the margins charged by traditional banks and NBFCs in the process. Cred will take a 5-6% stake in the company, valuing it at around $200 million. Cred users could ‘invest’ their savings in a capital pool, which would then be used to lend to customers looking for personal loans on the platform. As part of the agreement, LiquiLoans, which claims to have been profitable since its inception, will explore a strategic relationship to strengthen its technology capabilities.
